In this Part of this Act, if not inconsistent with the context,—

A local authority may from time to time raise a special loan for and in connection with the constructing, providing, or establishing any public work, or the purchase or other acquisition of any land, building, erection, or structure, or the engaging in any undertaking as to which the local authority is duly authorised by law.

One special loan may be raised for more than one of such purposes, the amount applicable to each purpose being stated when submitting the proposal for the loan to the ratepayers as hereinafter mentioned, or in the special order authorising the loan, as the case may be.

A local authority may raise a special loan for any authorised purpose in and for the benefit of some defined part of a district (whether called by any distinctive name or not), and in such case—

1906, No. 29, sec. 2

A local authority may unite with some one or more local authorities in raising a joint special loan for any authorised purpose which is declared by resolution by each of the local authorities concerned to be of benefit to their respective districts, and in such case—

In the case of a joint loan, the local authorities interested may agree as to the mode in which the loan shall be apportioned, and what part of the special rate shall be raised by each of them, and also which of such authorities shall have supervision and control of the public work or undertaking upon which such loan is to be expended.

The local authority of any district may permit any other local authority to construct or carry out a public work or undertaking in such first-mentioned district on such terms as may be agreed between such local authorities; and the local authority so receiving permission may, if so authorised by the votes of the ratepayers as hereinafter provided, apply all or any part of the moneys raised under this Act for the purposes of such work or undertaking in like manner as it could do in its own district.

A local authority may, out of any loan-moneys, pay—

In either case the intention to pay such expenses or interest shall be stated to the ratepayers in the notice referred to in section eight hereof.

It shall not be lawful to pay out of any loan the cost of maintenance or repair of any public work or undertaking for which the loan was raised.

The local authority may, in any case where it is deemed advisable, deposit with any bank at interest any sums of money at credit of any loan account upon such terms as the bank and the local authority agree.

Before raising a. special loan the consent thereto of the ratepayers of the district shall be obtained by the local authority, and for that purpose the steps hereinafter directed shall be taken.

The local authority shall publish in some newspaper circulating in the district, once in each week for four successive weeks, a notice setting forth—

A meeting of the ratepayers to consider the proposal shall be called by the Chairman, by not less than seven clear days’ public notice in some newspaper circulating in the district, for a day not more than ten days after the last publication of the notice referred to in the last preceding section.

In road districts and river districts not divided into subdivisions. and in town districts, the meeting shall be held at the time and place specified in the notice, and the Chairman shall preside thereat.

In road districts and river districts divided into subdivisions, and in counties, the meeting shall be held in each subdivision and riding at the time and place specified in the notice, and some member of the local authority appointed in that behalf by the Chairman shall preside.

If the member to preside is not present, or does not preside, the meeting shall appoint its Chairman.

After the holding of such meeting or meetings, the Chairman of the district may, if he thinks fit, and shall if requested by resolution passed at any such meeting, cause a poll of the ratepayers to be taken upon the proposal.

The poll shall be taken as follows:—

If the total number of valid votes recorded in favour of the proposal is at least three-fifths of the total number of valid votes recorded at the poll, then, and not otherwise, the proposal shall be deemed to be carried, and the local authority may proceed with the proposal accordingly; but if the proposal is not carried, the local authority shall not so proceed:

Provided that in the case of a borough a majority of the total valid votes recorded shall suffice to carry the proposal.

As soon as conveniently may be after the poll the Chairman shall send to the Minister, for publication in the Gazette, a notice of the number of votes recorded for and against the proposal, and in such notice shall declare the proposal to be carried or rejected, as the case may be.

A similar notice shall also be published in some newspaper circulating in the district.

If the proposal is carried, the notice thereof so published in the Gazette shall be conclusive evidence that the raising of the loan to which it refers is duly authorised, and that all proceedings and things under this Act in relation thereto have been lawfully taken and done.

If the Chairman knowingly inserts, or causes or allows to be inserted, in any notice published as aforesaid any false statement as to the number of votes recorded for and against any proposal to which such notice relates he shall be liable to a fine not exceeding five hundred pounds, to be recovered summarily before a Magistrate under “The Justices of the Peace Act, 1908.”

If the result of any poll is disputed, any six ratepayers may, in the manner prescribed by “The Local Elections and Polls Act, 1908,” require an inquiry to be held, and the matter in dispute shall be determined in the manner prescribed by that Act in the case of disputed polls:

Provided that where the number of ratepayers on the roll of any district or on any special roll does not exceed twenty, then the inquiry may be held as aforesaid on the requisition of not less than one-fourth of the number of ratepayers on such roll.

A local authority may raise a special loan by special order, and without taking the steps described in sections seven to thirteen hereof, for any of the following purposes:—

1906, No. 29, sec. 3

For the purpose of securing the repayment of’ any special loan, and the interest thereon, the local authority may appropriate and pledge as such security any one or more of the following:—

The securities pledged for any special loan shall be jointly and severally liable for the whole loan.

The moneys secured on any public work or undertaking shall be a first charge thereon.

A special rate to provide for the payment of interest, or interest and sinking fund, upon any special loan shall be made and levied where necessary, by special order gazetted, in the form numbered (2) in the Second Schedule hereto.

Every special rate shall be an annually recurring rate, and shall be payable at intervals as specified in such special order; and shall be levied year by year, without further proceeding by the local authority, until the loan in respect of which such special rate was made is paid off.

Every special rate shall be so calculated as to yield, if necessary, ten pounds per centum more than the annual or other charges in respect of the loan.

Every special rate shall be made over an area contained within continuous boundaries, and all the rateable property within that area shall be liable to the special rate.

Where, after the special rate is made, any property within that area becomes rateable property within the meaning of “The Rating Act, 1908,” such property shall become liable to the special rate and shall be rated accordingly.

The last preceding subsection shall apply and fie deemed to have applied to all special rates made on or after the twelfth day of October, one thousand eight hundred and ninety-six, and in the case of special rates made before that date shall also apply to all property which after the first day of October, one thousand nine hundred and two (being the date of the coming into operation of “The Local Bodies’ Loans Amendment Act, 1902”), became or becomes rateable property.

A special rate to provide for the payment of interest, or interest and sinking fund, upon a loan raised for the exclusive benefit of any part of a district may be made and levied as aforesaid within that part only.

All special rates shall be applicable to the loan as security for which they were made, and to no other purpose.

Where a special loan is secured by a special rate made over the whole of the district, the local authority may by special order decide to pay the interest, or interest and sinking fund, on such loan out of its general fund; and where a special loan is secured by a special rate made over the whole of any legal subdivision or of any defined portion of a district, the annual charges in respect of the loan may be paid out of any separate rate made over the whole of the same subdivision or portion.

Where a special loan is secured by a special rate made over portion of the district, the local authority may, with the consent of the Auditor, by special order decide to pay the interest, or the interest and sinking fund, on the loan out of the general fund:

Provided that the amount of the interest, or interest and sinking fund, on any such loan so paid shall not exceed fifty pounds in any one year.

To the extent to which the payments authorised by this section are made as therein mentioned it shall not be necessary to collect the special rate.

The local authority making a special rate may from time to time amend the same, by increasing or diminishing it, if necessary, so that the annual produce thereof shall suffice to provide the payment of interest, or interest and sinking fund, on account of the loan secured thereon.

But no special rate shall be diminished unless the Auditor, previous to any such reduction, approves thereof in writing; and such reduction shall only continue for so long a period as he approves in writing.

In any case where a loca authority proposes to construct a public work for the benefit of any such portion of its district as is comprised within a gold-mining district, and to raise a loan for that purpose, the following special provisions shall apply, anything in this or any other Act to the contrary notwithstanding:—

Mining privileges rateable.

Goldfields revenue may be pledged. 1902, No. 32, sec. 15

Minister may lend £15,000 a year for water-supply.

For the purposes of this section “The Rating Act, 1908,” is hereby incorporated herein:

Provided, however, that that Act, and all other Acts in conflict with this section, are hereby modified to the extent of such conflict, but not further or otherwise.

Every special loan under this Act shall be raised by the issue of debentures in the form numbered (3) in the Second Schedule hereto.

Such debentures shall be numbered consecutively, so that no two debentures bear the same number, and shall be for a sum of not less than twenty and not more than one thousand pounds.

Every debenture shall state on the face thereof the public work or undertaking, special rate, or other property or funds upon which the principal and interest are secured, and also the fact that the holder thereof has no claim in respect thereof upon the Government or public revenues of New Zealand.

All such debentures shall be signed by the Chairman and countersigned by some officer appointed by the local authority for that purpose, or shall be signed by the Agents hereinafter mentioned; and, in the case of a joint special loan, shall be signed and countersigned in such manner as may be agreed on by the local authorities jointly raising the loan.

The yearly interest on every debenture shall not exceed five per centum on the amount thereof, and shall be payable half-yearly or otherwise; and separate coupons for each sum so payable, in the form numbered (4) in the Second Schedule hereto, and numbered consecutively for each debenture, shall be attached thereto.

It shall be sufficient if the signatures of any persons to any coupon are lithographed on the coupon, or impressed thereon by means of a stamp.

Debentures and coupons respectively shall be transferable by delivery; and payment of the sum named therein to any person in possession of any such debenture or coupon shall discharge the Corporation of all liability in respect of such debenture or coupon.

Any debenture may also be transferred by indorsement, in or to the effect of the form numbered (5) in the Second Schedule hereto (or by separate form of transfer to the like effect), and such transfer, or a notarially attested copy thereof, may be presented for registration in the books of the local authority at its public office.

Such transfer, or the registration thereof, shall not prevent such debenture from subsequently passing by delivery alone, or affect the right of the holder thereof for the time being to demand from the local authority payment of the moneys secured thereby in terms thereof, or his right to receive any conversion or other new debenture, or compensation in exchange therefor under any scheme for such exchange, or otherwise to deal as the owner thereof with the local authority; nor shall such transfer or registration preclude the local authority from so dealing with such holder.

The local authority, or, in the case of a joint special loan, the local authorities jointly raising such loan, may appoint any incorporated company or association, or any such company or association together with one or more persons, within or out of New Zealand, to be Agents for raising and managing any loan authorised to be raised under this Act.

Such Agents shall have full power to raise such loan by debentures or otherwise, in such manner, and either at once or at such times and in such parts, and upon such terms and conditions, as the local authority or local authorities direct, and to give or grant any discharge or quittance for the moneys raised under any such loan, and to dispose of such moneys in such manner as the local authority or local authorities direct.

Pending the raising of any special loan, the local authority raising the same, or such Agents as aforesaid, may borrow any turn or sums of money, not exceeding the whole amount authorised to be borrowed, by the hypothecation or mortgage of any debenture hereby authorised to be issued; but all moneys so borrowed shall be a first charge upon and shall be repaid out of the loan when raised, and the yearly rate of interest on moneys so borrowed shall in no case exceed six per centum.

All moneys raised under this Act by a local authority shall be paid into a separate account in the name of the special loan at the bank where the local fund is kept, and shall not be drawn out of such account or expended except for the special purposes of the loan.

The sum of money named in any debenture and in any coupon shall, on maturity, be a debt due to the holder thereof by the local authority that issued the same, and shall be payable at the place, within or out of New Zealand, named in the debenture, and at the time named therein, being not longer than fifty years from the issue thereof.

Before raising any loan the local authority shall make provision for the repayment thereof, either—

In order to provide funds for the creation of a sinking fund, or for the repayment of debentures becoming due by periodical drawings. the local authority may permanently appropriate and also pledge any part of the local fund not prohibited by this Act from being made security for such loan.

The local authority shall from time to time appoint Commissioners, within or out of New Zealand, to whom they shall pay all moneys so appropriated as a sinking fund or for the repayment of debentures as hereinbefore provided; and such Commissioners shall invest such moneys, together with all interest and profits accruing therefrom, in such securities as the local authority from time to time directs.

The Commissioners to be appointed under this section may be interpreted to mean the Public Trustee alone, or may include any incorporated company or association, within or out of New Zealand, as one of such Commissioners.

In the case of a joint special loan the local authorities concurring in raising the same may unite in appointing such Commissioners.

The purchase by the Commissioners of any debenture securing repayment of any part of the loan for which a sinking fund was created shall be deemed to be an investment of the sinking fund within the meaning of this section.

All Commissioners appointed under the last preceding section shall be deemed to be bodies corporate, with perpetual succession and a common seal, and power to do and suffer all things which bodies corporate may do and suffer, and with authority for any two of such Commissioners to exercise the functions of the corporate body.

All vacancies’ arising in the office of any Commissioner shall be filled as they arise by new appointments by the local authority concerned.

When the principal of any loan becomes payable, the accumulated sinking fund provided for repaying the same shall be applied by the Commissioners in the payment thereof.

In the case of periodical drawings the Commissioners shall from time to time pay out of moneys paid to them for that purpose and the accumulations thereof (if any) the amount of all debentures coming due, according to the conditions on which the loan was raised.

The Commissioners shall, whenever required, render to the local authority accounts of all moneys and all securities in their hands.

Immediately after the thirty-first day of March in each year the Commissioners shall render to the local authority a balance-sheet showing all transactions in respect of such moneys or securities during the year ending on that day.

Such balance-sheet shall be accompanied by a certificate, signed by the Auditor or such person as he may appoint for the purpose, of all the securities held by the Commissioners.

The local authority may borrow money—

No claim of any holder of debentures or coupons secured on any public work or undertaking, special rate, or other property of a district or part thereof, under this Act, shall attach to or be paid out of the public revenues of New Zealand or attach to or be paid by the Government thereof.

If the sum secured by any debenture or any coupon is not paid upon presentation thereof respectively at the place where and the time when the same is payable, or at such place at any time thereafter, the holder thereof may apply to a Judge of the Supreme Court, by petition in a summary way, for relief under this Act; and the Judge may, if satisfied of the truth of the matters alleged in such petition, appoint a Receiver of such part of the local fund as is liable under the provisions of this Act for the payment of such debenture or coupon.

Such part of the local fund as is specified in the Judge’s order, and all securities held by the local authority or by the Commissioners of Sinking Funds as an accumulated sinking fund for the repayment of that loan, shall, from the date of the said order, vest in the Receiver so appointed, and shall cease to be vested in the Corporation or the said Commissioners.

All powers for the recovery of rates, tolls, rents, or other moneys of the local authority shall, after the appointment of a Receiver and in respect to all moneys hereby vested in him, cease to be exercised by the local authority, and shall be exercised by the Receiver.

The Receiver shall, in respect of any special rates vested in him, have the power given to the local authority to amend a special rate, as provided by section nineteen hereof, but such power shall be exercised only upon an order by a Judge of the Supreme Court.

Every Receiver shall, before entering on his office, give such security for the faithful execution thereof as the Judge directs.

All moneys received by the Receiver shall be applied as follows, and that only under the order of a Judge of the Supreme Court:—

The terms of such order may be adapted to meet the case of a joint special loan.

The Receiver shall account for all such moneys in such manner as the Judge directs.

When all the principal and interest of the loan in respect of which the Receiver was appointed are paid, or at any time by an order of the Judge upon the application of the local authority, the powers of the Receiver shall cease, and shall revest in the local authority; and in such case he shall forthwith pay any moneys in his hands into the local fund.

With a view of avoiding unnecessary expense, the Judge, if he thinks fit, may appoint as Receiver the Clerk of the defaulting Corporation, upon such terms and conditions as the Judge thinks fit to impose.

Where the principal and interest of any loan are secured either wholly or in part upon any public work or undertaking, or the revenues to be derived therefrom, and default is made, the holder of such security may, without prejudice to any other remedy given by this Act, apply to a Judge of the Supreme Court in manner aforesaid for relief; and the Judge may, if satisfied of the truth of the matters alleged, order that such public work or undertaking, or such part thereof as is liable under the provisions of this Act for the payment of such money, shall be sold at such time or times and either together or in parts, and on such terms and conditions, as the Judge thinks fit; and in the meantime the Judge may appoint a Receiver of the revenues derivable from such public work or undertaking:

Provided that no public reserve, or land granted or set apart by the Crown for the use, convenience, or enjoyment of the ratepayers or inhabitants of a district, and which forms part of any such security as aforesaid, shall be sold under any power contained in or derived under this Act.

A local authority may agree with any creditor to extend the time for payment of any principal or interest owing by it, and may in respect of his debt issue and deliver to a creditor debentures, coupons, or other security under this Act.

If the local authority at any time—

every member of the local authority who consents thereto shall, for each such offence, be liable to a penalty not exceeding one hundred pounds, to be recovered, with full costs of suit, in any Court of competent jurisdiction.

It shall be the duty of the Auditor to institute the necessary proceedings against any member liable to any such penalty.

All costs incurred by the Auditor in any such proceedings shall be paid out of the local fund; and all moneys recovered for penalties and costs shall be deemed to be part of the local fund, and shall be paid over accordingly.

Any member of a local authority voting against any such illegal borrowing, illegal issue of debentures, or illegal expenditure as mentioned in the last preceding section, may require that his vote shall be recorded on the minutes or other proceedings of such local authority accordingly.

At any meeting at which any proposal is made for the borrowing and raising of any money on loan, or for the expenditure of money borrowed under this Act, or at which any matter incidental to such borrowing or expenditure is proposed, then, if the proposal is carried without a division being taken thereon, it shall be assumed that the voting thereon was unanimous.

Any member of the local authority may demand that a division be taken on any such proposal, and thereupon it shall be the duty of the Chairman or other person presiding at such meeting to make and keep a record of the votes of the members voting on such division, and to instruct the Clerk or other proper officer to enter such record on the minutes of the local authority.

If the Chairman or other person fails to make and keep a record of the votes on any such division, or if any Clerk or other officer, being so instructed as aforesaid, fails to enter such record on the minutes as aforesaid, the Chairman, person, or Clerk so offending shall be liable to a fine not exceeding twenty pounds and not less than five pounds.

In this Part and in Part IV of this Act, if not inconsistent with the context,—

Subject to the provisions of this Part of this Act, the Minister is hereby authorised to lend money to any local authority empowered to borrow and raise money by way of special loan under this Act for the construction of a public work within the meaning of this Part of this Act.

The Minister shall not grant any loan under this Part of this Act on the security of any special rate unless—

Paragraph (a)of the last preceding subsection does not apply in the case of—

Before granting any loan the Minister shall be satisfied that the local authority is duly empowered to raise money by way of special loan for the construction of a public work, and has made a special rate for the purpose of paying the interest and other charges thereon, and has taken all necessary steps to comply with the provisions of Part I of this Act.

The Minister may, in his discretion, refer any application for a loan, with particulars of the security offered thereon, to the Controller and Auditor-General, and may require him to advise as to the sufficiency of such security.

Where the amount estimated to be collected by any special rate offered as a security for a loan under this Part of this Act is less than the amount required for interest and other charges on the loan, and falls short of the security required in respect of the loan, the Minister may lend such reduced sum as in his opinion is sufficiently secured by the special rate aforesaid.

The moneys to be lent or advanced to a local authority shall be paid out of such funds as are in the control of the Minister by virtue of this Part of this Act, and the local authority shall from time to time do all acts and things and execute all instruments necessary to give effect to this Act.

The Minister may enter into an agreement with a local authority for all or any of the purposes following, and may from time to time modify or alter any such agreement:—

A loan under this Part of this Act shall be deemed to be made when the local authority has complied with all necessary formalities under this Act in respect thereof, and the Minister has agreed to make the loan; and such loan or any advance on account thereof shall bear interest at the rate of four pounds per centum per annum until the next ensuing first day of February, when such loan or advance shall be inscribed as hereinafter mentioned.

Interest on the amount inscribed shall be payable half-yearly, the first of such payments being payable on the first day of August following the date of inscription.

Where advances have been made to a local authority on account of a loan, the Minister shall, as soon as may be after the thirty-first day of January in each year, render an account thereof to the local authority.

Where the amount so advanced or any part thereof is a fraction of fifty pounds, such fraction may, if the loan is not completed in that year, be carried on to the next year, and treated as part of the advances to be made in the year to which it is carried forward.

If any part of a loan agreed to be taken by a local authority in any one year is not so taken, the same may be carried on to the next or any subsequent year, and may then be taken as agreed between the Minister and the local authority.

In all loans under this Part of this Act granted after the coming into operation of this Act the rate of interest and the period during which the interest is payable by the local authority shall, at the option of the local authority, be—

Such option shall be exercised by the local authority on its application for the loan.

At the expiration of the period during which interest is payable the liability of the local authority shall cease without further payment.

With respect to loans granted prior to the nineteenth day of November, one thousand nine hundred and seven (being the date of the coming into operation of “The Local Bodies’ Loans Act Amendment Act, 1907”) under Part II of “The Local Bodies’ Loans Act, 1901,” or under “The Government Loans to Local Bodies Act, 1886,” the rate of interest payable by the local authority shall hereafter be as follows:—

The provisions of subsections one and three of section sixty-one hereof may be applied to any loan existing on the first day of January, one thousand nine hundred and two (being the date of the coming into operation of “The Local Bodies’ Loans Act, 1901”), in the manner and subject to the conditions following, that is to say:—

If, on the completion of the public work for which any loan is obtained, it is found that all the money lent is not required for the purpose for which it was borrowed, then the money not so required shall be repaid to the Minister.

Where a special loan is obtained for the purpose of more than one public work, the Minister may authorise any surplus money remaining after the completion of one of such works to be applied to the completion of any other of the said works, in case the amount appropriated to such work is not sufficient for its completion.

The Minister shall from time to time give notice in the Gazette, and in such other manner as he thinks expedient, of the date on which he will be prepared to consider applications from local authorities for loans under this Part of this Act.

Applications for loans in cases of extraordinary damage, where a public work has been destroyed by flood, tempest, or accident, or to carry out the terms of a prior agreement made between the Treasurer and a local authority as hereinbefore authorised, shall have priority over other applications made under this Part of this Act.

If at any time there are not sufficient funds available under this Part of this Act to enable the Minister to make loans to all the local authorities that have applied for them, the Minister shall (but subject to the terms of the last remaining section) grant such applications pro rata:

Provided that if the amount allotted pro rata to any local authority is considered by such authority inadequate to commence the public work for which the loan is required, the Minister may agree with the local authority to hold over such amount for its use until the next succeeding year, when the same shall be available in addition to any sum which such authority may then be entitled to or make application for.

The Minister shall refuse to grant loans under this Part of this Act only upon one or more of the grounds following:—

Fresh application for a loan may be made at any time.

The statement of the Minister in respect of any application that this Act has not been complied with, or that no money is available, or that the security is not sufficient, shall be conclusive; and no such statement shall be questioned, or be the subject of legal proceedings at the instance of any local authority, or of any person, in any Court of judicature.

The Minister shall not lend or agree to lend in any one year, to any of the local authorities hereinafter mentioned, a larger sum than that set opposite the name of each local authority, that is to say,—

1901, No. 40, sec. 2

1901, No. 39, sec. 67

If the moneys granted are found insufficient to complete the public work in respect of which application is made, a further application may be made by the local authority, and may be granted by the Minister if money is then available and the expenditure contemplated is covered by the previous consent of the ratepayers of the district.

Where the amount required on such further application is not greater than ten per centum of the sum originally authorised by the ratepayers to be borrowed, such further application may be granted by the Minister.

In any such case it shall not be necessary to give any notice to or take a further poll of the ratepayers; and a special rate may be made by the local authority as security for the interest and other charges in respect of such further loan.

Such last-mentioned special rate shall be deemed to be and may be levied as a part of or in addition to the special rate made and levied in respect of the original loan.

The minimum amount of any loan granted or agreed to be granted under this Part of this Act, whether on original application or on further application, shall in no case be less than fifty pounds.

The Minister may from time to time, if he thinks fit, accept from any local authority the repayment in whole or in part of any loan raised by it under this Part of this Act, notwithstanding that the period for which the loan was raised has not expired, or that the public work for which it was raised has not been completed.

In any case of repayment of principal under this section a duly proportionate adjustment of interest shall be made.

In any case where default is made by a local authority in the full and punctual payment of any interest on a loan raised under this Part of this Act, the amount of such interest, together with an additional charge at the rate of five per centum per annum on the amount in default, shall be recoverable from the defaulting local authority as a debt due to the Crown.

A certificate under the hand of the Auditor shall be sufficient evidence of the sums payable in respect of such interest and additional charge, and, on application by the Minister in that behalf, the Auditor shall take all steps necessary to procure payment thereof.

In addition to such remedy, the Auditor may be appointed a Receiver of the special rate or other security on which the loan was issued, as provided in Part I of this Act.

Out of the moneys authorised by this Part of this Act to be borrowed for the purpose of granting loans to local authorities, the Minister may issue and apply from time to time such sum or sums, not exceeding fifty thousand pounds in the whole, as are appropriated by Parliament for the purpose of opening up blocks of land for settlement by the formation or construction of roads or bridges within or to afford access to such blocks, either before or after the sale or other disposal thereof.

All such money shall be expended under the authority of the Minister of Lands.

Before any such money is expended upon any block of land it shall be necessary that the said block of land shall be proclaimed as set apart for settlement.

The provisions of this Part of this Act shall, so far as the same are applicable, apply to loans granted under this section.

Nothing herein shall be deeemd to apply to land acquired under “The Land for Settlements Act, 1908.”

Where, in the opinion of the Minister of Lands, it is advisable to expend moneys in the opening-up of any such block by roads, the Surveyor-General shall report to that Minister on the value of the block, and on the works necessary to form such roads and bridges, and furnish an estimate of the cost of such works; and the sum expended in respect of any such block shall in no case be in excess of one-half the value of the land therein.

Any sum or sums so expended in respect of any block of land shall be a first charge on and shall be refunded from the proceeds of the sale or other disposal of the lands therein.

The Governor in Council may from time to time make regulations under this section providing for the times at which and the proportions in which all such expenditure, together with the interest thereon at the rate of four and a half per centum per annum, shall be refunded in respect of lands disposed of for cash, or on deferred payment, perpetual lease, or in any other manner.

There shall be prepared and laid before Parliament, within fourteen days after the first sitting-day next after the end of each financial year, a statement showing the blocks of land proclaimed, together with the report of the Surveyor-General on the value thereof, and on the necessary works, and the estimate and cost of such works; and also of the sum or sums expended under section seventy-five hereof in respect of such blocks.

Where any local authority entitled to receive the third or fourth of the annual payments arising from lands held on deferred payments or perpetual lease satisfies the Land Board of the district that the making of roads of access to open up the said lands and all works of water-supply and drainage are completed, or that it proposes to complete the same out of moneys to be borrowed for the purpose, then and in either of such cases the Board may grant a certificate to the local authority to such effect as the case may be, and the said local authority shall thereafter be entitled to apply the recurring annual payments aforesaid as ordinary revenue of the district in the first-mentioned case, and in the second case may pledge such annual payments, or so much thereof as is necessary, in lieu of or in reduction of special rates as security for any such loan as aforesaid.

Where a selector of land on deferred payments pays the capitalised value of the land in his occupation, the third of such value shall in every case be applicable in the same manner as provided in this section in respect of the recurring annual payments, and shall be so applied.

In this section “payments” means rents of land held on perpetual lease, and instalments payable in respect of land held on deferred payments, and includes the capitalised value paid in respect of any such land.

Notwithstanding anything in “The Counties Act, 1908,” limiting the amount of general and separate rates which may be made in any year by County Councils, the Council of any county, if duly authorised in that behalf by a poll of the ratepayers taken in manner prescribed by this Act in the case of a proposal to raise a special loan, may by special order make and levy, in addition to the general and separate rates authorised by the aforesaid Act to be raised, a special rate, to be called a “bridge rate,” for the purpose of providing funds for the reconstruction of bridges on roads under the jurisdiction of the Council, but such rate shall not in any one year exceed the amount of One farthing in the pound on the capital value of all the rateable property in the county.

Such special rate may be levied on the whole county when the bridge proposed to be reconstructed is for the benefit of the county generally, or the Council, if it thinks fit, may levy the rate on one or more ridings which are specially benefited by that bridge.

The proceeds of any such rate shall be paid into a separate account at the bank, to be called “The [Name of County] Bridge Fund Account,” and a separate account thereof shall be kept by the Council.

The cost of raising the rate shall be charged against the General County Fund, and no part of such Bridge Fund shall be used for any purpose save as in manner hereinafter provided.

Where, by reason of any accident of flood, fire, or other mischance, or on account of disrepair, it becomes necessary to renew any such bridge exceeding thirty feet in span, the Council may make application to the Minister for a loan for that purpose.

Such application shall be accompanied by a certified copy of the special order making the bridge rate, and shall set out—

The Minister, upon being satisfied that the circumstances of the case and the funds at the disposal of the Council, as hereinbefore provided, warrant him in so doing, may, without reference to the ratepayers of the county, grant such loan.

The Bridge Fund Account of any county shall be used solely and exclusively for meeting the interest and charges on loans raised under the provisions of this section.

This Part of this Act shall not apply to boroughs, except for the following purposes:—

Provided also that the Minister may agree to lend to the Council any sum not exceeding the amounts above specified in each of two successive years.

The Minister shall not grant any loan for any of the purposes mentioned in paragraphs (a) and (c) of the last preceding section to any borough the inhabitants of which at the time of the then last census were returned as numbering more than four thousand.

For the purposes of section eighty-two hereof (but for no other purposes) a borough shall be deemed to be a district within the meaning of this Part of this Act.

The Minister may in each financial year grant loans to local authorities under this Part of this Act to the amount appropriated by Parliament for that purpose.

If no sum is so appropriated in any financial year, the Minister may make loans under the authority of this Part of this Act in such year to a total amount not exceeding two hundred and fifty thousand pounds, inclusive of any amount appropriated by Parliament under section seventy-five hereof, and such total amount shall be in addition to any loans agreed by the Minister to be made previously but not yet completed.

For the purpose of roviding the money to make loans to local authorities under this Part of this Act, the Minister, upon being authorised by the Governor in Council so to do, is hereby empowered to raise from time to time by way of loan, in New Zealand or elsewhere, on the security of and charged upon the public revenues of New Zealand, such sums of money, not exceeding in each financial year the amounts aforesaid.

This Act shall be deemed to be an authorising Act within the meaning of “The New Zealand Loans Act, 1908”; and the moneys hereinbefore authorised to be raised shall be raised under and subject to the provisions of that Act accordingly.

The sums so raised shall bear interest at such rate (not exceeding four pounds ten shillings per centum per annum) as the Minister prescribes.

There shall be a sinking fund created for the purposes of this Part of this Act, which shall be under the control of the Public Trustee.

With respect to loans existing on the twenty-fourth day of October, one thousand eight hundred and ninety-nine, the sinking fund shall be calculated at the rate of two pounds per centum per annum.

With respect to all loans granted after that date, the sinking fund shall be calculated at the rate of—

The amount payable under the two last preceding subsections shall be paid annually by the Minister into the Public Trust Office to the Sinking Fund Account without further appropriation than this Act.

All amounts received from time to time for sinking fund shall be invested by the Public Trustee in such authorised investments as will yield the highest amount of interest.

The Minister shall not be in any manner personally liable to any local authority, or to any person, for or in respect of any act or thing made, done, or executed by him under this Act.

The Minister shall annually lay before Parliament, within fourteen days after the first meeting thereof, a report with respect to matters done under this Part of this Act, showing—

The merger of any area over which a special rate is made as security for a loan, or the inclusion of such area within the district of a local authority other than the local authority that made the rate, shall not affect such special rate as a security, but the same shall continue to be charged and levied upon the whole area upon which it was charged prior to such merger or inclusion, subject as hereinafter provided.

Where the whole of such area is merged or included as aforesaid, then the whole of the liability in respect of the loan shall upon such merger or inclusion ipso facto become a liability of the local authority within whose district such area is merged or included, and all the powers and authorities in connection with the loan shall be deemed to be transferred from the local authority that raised the loan to the local authority within whose district such area is merged or included; and such last-mentioned local authority shall take all such steps as may be necessary for collecting and recovering the special rate, or for making any further rate or rates that may be required to meet the charges or interest from time to time payable with respect to the loan.

Where part only of the area is merged or included as aforesaid, then, upon the written application of the local authority that raised the loan, or of the Minister, the Governor in Council may adjust or apportion the liability in respect of such loan among the respective local authorities affected by such merger or inclusion.

Where a transfer, or adjustment, or apportionment of liability has been made as aforesaid, all such entries may, with the previous consent of the Auditor, be made in the register prescribed by section ninety-three hereof as are necessary to give effect to such transfer, adjustment, or apportionment:

Provided that in every case such notices shall be given to the local authority or authorities in whose district any such part area has been merged or included as may be prescribed by regulations made under this Act.

Where in the case of any special rate made as security for a loan over any area heretofore merged or included as aforesaid a question arises as to the local authority entitled or liable to collect the rate, or liable to make the payments in respect of the loan, such question shall be decided by the Governor in Council, upon the written application of the local authority that raised the loan or is for the time being liable to pay the interest and charges in respect thereof, or upon application by the Minister:

Provided that in every such case the like notices shall be given and the like consequences shall ensue as upon a transfer, or adjustment, or apportionment, as the case may be, under this section:

Provided also that any such transfer, adjustment, or apportionment shall take effect as from a date to be specified in the Order in Council.

The provisions of this section shall be a sufficient authority to any local authority to whom any loan has been transferred or apportioned, in whole or in part, under this Act to make and levy by special order, and without obtaining the consent of the ratepayers of the special-rating district, such further special rate or rates on the rateable property therein as may be required to meet the interest and charges in respect of such loan.

This section shall apply only to loans granted by the Minister under this Part of this Act or the corresponding provisions of any former Act.

The provisions of Part I of this Act relating to the issue of debentures by local authorities shall not apply to any loan raised by a local authority under Part II of this Act, but in lieu thereof the debt shall be inscribed as hereinafter provided.

The Minister shall cause a register to be kept in the Treasury, in which shall be inscribed, in the names of the Custodians of Securities under “The Public Revenues Act, 1908,” the total amount of the debt of each local authority in respect of moneys lent to it under this Part of this Act.

Before such inscription the Minister shall give notice to the local authority that he intends so to inscribe such debt, and the amount thereof; and if any difference arises as to the amount so to be inscribed, the matter shall be referred to the Auditor, whose decision shall be final.

Where any debt is so inscribed, the same liabilities shall attach to the local authority thereunder as would have attached to it if the local authority had issued debentures as hereinbefore provided; and all the provisions hereinbefore made in respect of any such debentures shall, mutatis mutandis, apply to such inscription.

The Governor in Council may from time to time make regulations providing for the exercise of all or any of the powers vested in the Minister under the three last preceding sections, or necessary for giving effect thereto.

In this Part of this Act, if not inconsistent with the context,—

Subject to the provisions of this Part of this Act, any local authority, if authorised in that behalf by special order, may from time to time call in and convert any outstanding loan raised by such local authority under the authority of any Act or Ordinance other than Part II of this Act or the corresponding provisions of any former Act.

Every local authority, before converting a loan under this Part of this Act, shall make provision to the satisfaction of the Public Trustee for the repayment of the converted loan at maturity by the creation of a sinking fund.

For such purpose the local authority shall, out of its local fund, permanently appropriate such yearly sums as the Public Trustee deems necessary, and shall pay such sum to the Public Trustee yearly and every year during the currency of the loan, or until he is satisfied that the accumulations of sinking fund will suffice to redeem the loan at maturity.

The first yearly payment in respect of sinking fund shall be made to the Public Trustee by the local authority at the expiration of twelve months after the raising of the converted loan.

All moneys received by the Public Trustee from any local authority in respect of sinking funds shall be invested by him in such of the securities sanctioned by “The Public Trust Office Act, 1908,” as will yield the highest rate of interest, and, together with all accumulations of interest, shall be held by him for the purpose of redeeming the converted loan at maturity.

The Public Trustee shall supply to the local authority a yearly statement showing the accretions of sinking fund and the investments representing the same.

The Public Trustee shall make no charge by way of commission for managing and investing the sinking fund.

For the purposes of such conversion the local authority may issue conversion debentures, to be disposed of in exchange for the debentures representing the outstanding loan.

Such conversion debentures may be issued to the amount of the outstanding loan, and where there is no sinking fund, then also with such further amount by way of premium or compensation as is found to be necessary in order to effect the conversion.

Nothing in this Part of this Act shall be deemed to entitle the local authority to compel the holder of any such outstanding debenture to accept payment thereof before its due date.

The local authority may appoint any persons in England or elsewhere to be Agents for the purpose of managing and effecting the conversion of any loans, and such Agents may exercise such of the powers hereby conferred upon the local authority as the local authority prescribes.

Such Agents shall also be the agents of the Sinking Fund Commissioners in respect of the sinking fund (if any) connected with the loan to be converted, and shall have full power to act generally in connection with the conversion.

The holders of outstanding debentures shall be entitled to surrender the same in exchange for conversion debentures, at such rates as are agreed upon between the local authority or its Agents and such holders.

Any sum payable by way of premium or compensation in respect of such conversion shall be paid either in cash or in conversion debentures:

Provided that no conversion debenture shall be issued for a smaller sum than twenty pounds, and that any payment of a smaller sum shall be made in cash.

All sums payable in cash under the last preceding section, and also all costs of issuing such conversion debentures, and all charges incident to the conversion and other operations connected therewith, shall be paid out of the sinking fund (if any) set free by such conversion; or, if there is no sinking fund, or to the extent to which such sinking fund is insufficient, then out of the local fund.

The residue of the sinking fund (if any) so set free as aforesaid shall be applied as the local authority thinks fit, either towards payment of the aforesaid premium or compensation in respect of the converted loan, or in augmentation of the sinking fund to be established under this Part of this Act for the purpose of the repayment of the converted loan at maturity.

All sinking fund accrued and accruing in respect of any loan shall, to the extent to which such loan is converted, be deemed to be set free for the purposes aforesaid.

The Commissioners shall determine how much of the sinking fund in their hands is applicable to the unconverted portion of a loan, and how much thereof is from time to time set free:

Provided that from their determination there shall be an appeal to a Judge of the Supreme Court, whose decision shall be final.

Such appeal shall be brought by way of summons, and the Public Trustee shall sufficiently represent all interests other than those of the local authority.

Pending the operations for converting loans and issuing the conversion debentures the local authority may, for the purpose of carrying out the provisions hereof, obtain advances from any person to an extent not exceeding the estimated amount of sinking fund to be set free by the conversion.

The rates, revenue, or other securities for any loan to be converted shall, save as to so much of the sinking fund (if any) as is set free by the conversion, become the security for the conversion debentures representing so much of the loan as is converted.

Any local authority when converting two or more loans may consolidate them into one loan, and in such case the securities for the separate loans (other than sinking funds set free by the conversion) shall become a consolidated security for the conversion debentures representing so much of the separate loans as are converted and consolidated.

Nothing in this section shall prejudice the existing security for the debentures representing so much of any loan as remains unconverted.

Conversion debentures shall bear interest at a rate not exceeding four and one-half per centum per annum, and shall have a currency not exceeding fifty years.

Every debenture shall be in the form numbered (6) in the Second Schedule hereto, and shall be signed by the Mayor or Chairman, countersigned by the Treasurer or other officer of the local authority, and sealed with the corporate seal of the local authority.

All debentures shall be numbered consecutively, and as between the holders thereof shall rank equally.

Coupons, in the form numbered (7) in the said Schedule, shall be attached to every debenture, and shall bear the same number as the debenture to which they are attached.

The signatures to coupons may be made by fac-similes thereof in lithograph or otherwise.

No debenture issued under this Part of this Act shall be sold at a price that will produce to the purchaser a greater interest than four and one-half per centum per annum.

Every debenture shall be payable, both as to principal and interest, at a place, within or out of New Zealand, to be named in the debenture and also in the coupon.

Debentures and coupons shall be transferable by delivery, and payment to any person in possession of a debenture or coupon shall discharge the local authority from all liability in respect thereof.

It shall not be necessary for the local authority to cause any public meeting of the ratepayers to be held, or to take any poll of the ratepayers, for the purpose of consenting to the conversion or consolidation of any loan or loans or the issue of any conversion debentures, or the creation of the indebtedness consequent thereon.

No objection shall be allowed in any Court to any rate which the local authority or a Receiver purports to strike, make, or levy under this Part of this Act.

No informality or irregularity, whether in form or in substance, in the making, striking, or levying of such rate, or in the election or appointment of any body or person acting in connection therewith, shall be allowed by any Court as a defence to any action or proceeding for the recovery of such rate, or be entertained as a ground for quashing such rate or restraining the recovery thereof.

No claim of any holder of conversion debentures or coupons shall attach to or be paid out of the public revenues of New Zealand or the Government thereof.

The Governor may from time to time, by Order in Council gazetted, empower any local authority to inscribe all or any of its conversion debentures in the books of such bank or other corporation in New Zealand as he approves in that behalf, and to issue stock or other certificates in respect thereof.

The power conferred by this section on the Governor in Council may be similarly exercised by him in respect of inscription in England, in the event of such inscription being authorised by Imperial legislation.

For the purposes of such inscription the Governor in Council may from time to time make regulations prescribing the form of stock or other certificates to be issued, the form of register to be kept, and generally such other matters as he thinks necessary in order to give full effect to this Part of this Act.

No claim of any person in respect of any such inscribed debentures, or stock, or other certificates, or any interest thereon, or otherwise howsoever, shall attach to or be paid out of the public revenues of New Zealand or the Government thereof.

Where a notice is required by this Act to be given or published by a local authority, such notice shall be given or published in the same manner as other notices are given or published by such local authority, unless some other mode is expressly set forth in this Act.

Where any contract, debt, or liability is entered into or incurred, or any act or thing is done or suffered by a local authority under this Act, such contract, debt, liability, act, or thing shall for all purposes be deemed to be the contract, debt, liability, or act of the corporate body which such local authority represents.

Stamp duty shall not be payable in respect of any debenture or coupon issued under this Act, or of any transfer thereof respectively, or in respect of any statutory declaration required by this Act to be made by a local authority or any officer thereof.

Where at any time after a loan has been applied for or granted under this Act or any of the enactments mentioned in the First Schedule hereto, or under any Act repealed by any such enactment, it is discovered that any of the proceedings prior to the granting of the loan were irregular or defective, the Governor, if satisfied that the ratepayers have not been misled, may, by Order in Council gazetted, validate such proceedings, and thereupon the validity of the proceedings or of the security for the loan shall not be questioned on the ground of such irregularity or defect.

In any case where land liable to any special rate is acquired by the Crown, the Crown shall be liable for payment of such rate for any year during which there is no occupier of the land within the meaning of “The Rating Act, 1908.”

The Governor may from time to time, by Order in Council gazetted, make regulations—

With respect to special loans raised under any enactment mentioned in the First Schedule hereto, or under any Act repealed by any such enactment, the following provisions shall apply:—